Problem:
Product A has a contribution margin per unit of $500 and required 2 hours of machine time. Product B has a contribution margin per unit of $1,000 and requires 5 hours of machine time.
Required:
Question: How much of each product should be produced given there are 100 hours of available machine time? Note: Please provide full description.
- 50 units of A and 25 units of B.
- 25 units of B.
- 50 units of A.
- None of the above is correct.